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Thomas
Thomas, Lawyer
Category: UK Law
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Experience:  BA (Hons), PgDip, Practising Solicitor
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How can I stop a credititor getting there hands on my house

Resolved Question:

How can I stop a credititor getting there hands on my house if I go bankrupt?

Many thanks.

G
Submitted: 5 years ago.
Category: UK Law
Expert:  Thomas replied 5 years ago.
Hi
Do you own the house jointly or with another person?

Tom
Customer: replied 5 years ago.

Hi Tom,


 


Me and my wife own the house.


 


Thanks G

Expert:  Thomas replied 5 years ago.
Hi

You have children?

Tom.
Customer: replied 5 years ago.

Yes 2 children. But I want to stop them putting a charge on the house.


More info that may help.


I am a builder sole trader. A project did not goto plan and the clients are suing me for between £15k and £50K. There is a chance I will win the case. But if I dont I dont want to loose everything we have worked for. Hence considering Bankrupcy. I am trying to protect everything if the worse happens! Thanks. G


 

Expert:  Thomas replied 5 years ago.
Ok.

If your wife isn't party to the claim then her interest in the house or proceeds of sale will always be protected.

As you say, the. Creditors can enforce the debt in two ways. If they get a charging order or you enter bankruptcy then you share of the house is at risk I'm afraid, there is not a lot of getting around it. However you and your family will be able to defend on the basis that it is the family home and you require it to house yourselves. The court will only very reluctantly make an order where there are children that require a home.

In the case of bankruptcy the sale of they home (if there is no other option) can be postponed until the end of the first year. You would need to speak to your trustee in bankruptcy about this. Perhaps during this time you can accrue enough income to make some form of proposal that it acceptable to you creditors. If not, it will at least give you time to organise new accommodation.

You cannot simply gift you share of the house away because the courts have very wide powers to set aside transactions that are taken with a view to defrauding your creditors.

Sorry it could not be better news.

If this is useful please kindly click accept. You will be free to ask follow up questions.

Kind regards
Tom
Customer: replied 5 years ago.

After paying mortgage company and fees I would only be left with around £5k! Would I be forced to sell for such a small sum!?

Expert:  Thomas replied 5 years ago.
Hi

The ability to settle the amount owed would be a consideration of the court and for that sum of equity and in view that it is the family home I would be surprised if an order to sell was made.

Trust this clarifies, if so please click.accept.

Kind regards

Tom
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